EFFECT OF ENTREPRENEURIAL ORIENTATION ON FINANCIAL PERFORMANCE OF AGRO DEALER FIRMS IN KAKAMEGA COUNTY, KENYA
EFFECT OF ENTREPRENEURIAL ORIENTATION ON FINANCIAL PERFORMANCE OF AGRO DEALER FIRMS IN KAKAMEGA COUNTY, KENYA
Seth Yake Aloo - Student, The Catholic University of Eastern Africa, Kenya
Kifleyesus Andemariam - Lecturer, The Catholic University of Eastern Africa, Kenya
Mary Nyiva - Lecturer, The Catholic University of Eastern Africa, Kenya
ABSTRACT
The Government of Kenya has been implementing programmes with the aim of increasing agricultural productivity and rural incomes and thus increasing farmer’s access to modern farming inputs such as improved seed varieties and fertilizers, delivered mostly through agro-dealers. Despite this, agro- dealers face a challenge of satisfying the needs of these farmers due to heterogeneous environment they live in. The general objective of the study was to establish the effect of Entrepreneurial Orientation on the financial performance of agro dealer firms in Kakamega County, Kenya. The study adopted a cross-sectional research design. The study population included all the 277 agro dealers registered under the regulatory body, Pest Control and Products Board (PCPB), some of who are members of an existing Kakamega county agro-dealers association and the Agrochemical Association of Kenya (AAK). Data was analyzed using both descriptive statistics and inferential statistics. Descriptive statistics such as frequencies, percentages mean and standard deviation were used. Multiple regression was used to examine the relationship between each of the constructs of entrepreneurial orientation and financial performance of agro dealer firms. The findings showed that there was a significant relationship between entrepreneurial orientation and financial performance of agro dealer firms in Kakamega County. There was also partial mediating effect of county policies and infrastructure on financial performance of agro dealer firms. Part of the impact on financial performance is directly as a result of entrepreneurial orientation while part of the impact is through the mediating effect of county policies and infrastructure.
